Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062262 | Economics Letters | 2008 | 7 Pages |
Abstract
In a monetary growth model, I show that average inflation inhibits growth while inflation volatility enhances it. The effect of nominal volatility on human capital accumulation depends on the response of money demand and the corresponding extent of transactions costs rather than from a direct, precautionary motive.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dimitrios Varvarigos,